As a product manager, you are (hopefully) constantly seeking ways to better understand and meet the needs of your customers. The Kano model is a framework that can help you do just that.
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The model was developed by Professor Noriaki Kano in the 1980s and has since become a widely used tool in the field of customer satisfaction research.
How the Kano model works
The Kano model categorizes customer needs into three types: basic, performance, and excitement. Basic needs are those that customers expect to be fulfilled in any product or service. Performance needs are those that drive customer satisfaction when they are met, but do not necessarily impact satisfaction when they are not met. Excitement needs are those that surprise and delight customers when they are met, and can significantly impact customer satisfaction.
The three Types of Needs in the Kano Model
- Basic needs are often referred to as “must-be” or “hygiene” factors, as they are necessary for a product or service to be functional and acceptable to customers. These needs must be met in order for a product or service to be considered satisfactory. Some examples of basic needs might include reliability, safety, and durability.
- Performance needs are “one-dimensional” in that they have a linear relationship with customer satisfaction. In other words, the more a performance need is met, the more satisfied the customer will be. Some examples of performance needs might include speed, capacity, and efficiency.
- Excitement needs, on the other hand, are “delighters” that can significantly impact customer satisfaction. These needs are often not explicitly stated by customers, but rather are discovered through market research and analysis. Some examples of excitement needs might include innovative features, aesthetics, and personalization.
The Kano model is most useful in situations where a company is trying to understand what features or attributes of a product or service will drive customer satisfaction. It can be particularly useful in the early stages of product development, as it can help a company prioritize which features to focus on and which to de-emphasize.
Three Examples for applying the Kano Model
CRM software Example: Salesforce
Basic needs:
Data security and privacy, ease of use, data accessibility and integration with other tools.
Performance needs:
Customization and flexibility, automation of processes, data analysis and reporting capabilities.
Excitement needs:
Artificial intelligence and machine learning capabilities, personalized recommendations and insights, real-time data updates and notifications.
Example:
Salesforce, a well-known CRM software company, prioritizes the development of features that meet basic needs like data security and privacy, as well as performance needs like customization and automation. They also invest in the development of exciting features like artificial intelligence and machine learning capabilities to differentiate themselves from competitors and delight their customers.
Retail Company Example: Target
Basic needs:
Security and privacy of personal and payment information, ease of use, variety of products and brands.
Performance needs:
Customization and personalization of product recommendations, integration with other tools and resources, fast and reliable shipping options.
Excitement needs:
Artificial intelligence and machine learning capabilities for personalized recommendations and insights, innovative payment options, interactive shopping experiences, in-store experiences and events.
Example:
Target, a well-known retail company, prioritizes the development of features that meet basic needs like security and privacy, as well as performance needs like customization and fast shipping options. They also invest in the development of exciting features like artificial intelligence and innovative payment options, as well as in-store experiences and events.
E-Commerce Marketplace Example: Amazon
Basic needs:
Security and privacy of personal and payment information, ease of use, variety of products and brands.
Performance needs:
Customization and personalization of product recommendations, integration with other tools and resources, fast and reliable shipping options.
Excitement needs:
Artificial intelligence and machine learning capabilities for personalized recommendations and insights, innovative payment options, interactive shopping experiences.
Example:
Amazon, a well-known e-commerce marketplace, prioritizes the development of features that meet basic needs like security and reliability, as well as performance needs like customization and fast shipping options. They also invest in the development of exciting features like artificial intelligence and innovative payment options.
Key Takeaways
While the Kano model can be a useful tool for understanding customer needs and preferences, it is not always the best choice in every situation. For example, the model may not be as useful in understanding customer needs for complex products or services, where there may be many different dimensions of satisfaction. Additionally, the Kano model does not account for the overall value that a product or service provides to a customer, and as such may not be the best choice for understanding customer preferences in terms of pricing or overall value.
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